The demand for AI optical communication is surging! Coherent (COHR.US) has completely outperformed expectations in both performance and guidance, while the drop in stock price highlights the awkwardness of "perfect expectations."

According to the Zhichun Finance APP, photonics giant Coherent (COHR.US) delivered an impressive report for the fourth quarter of fiscal year 2026 after the market closed on Tuesdayboth revenue and profit significantly exceeded Wall Street expectations, and the guidance for the first quarter of fiscal year 2027 was also strong and above expectations, declaring that the demand for AI photonic connectivity is far from peaking. However, despite this "textbook-level" financial report, the stock price fell by about 5% after hours.